The Dow Jones industrial average added 47.08 points, or 0.47 percent, to end at 10,062.94. The Standard & Poor’s 500 Index gained 4.54 points, or 0.42 percent, to 1,096.56. The Nasdaq Composite Index edged up 1.06 points, or 0.05 percent, to close at 2,173.29. Financial spread betters expected Germany’s DAX to open 25 to 30 points higher and France’s CAC-40 to open 16 to 19 points higher. The benchmark Nikkei was flat at 10,244.64. The Topix, which is less tech-heavy, fell 0.5 percent to 899.67.

Germany’s leading institutes have warned that the pace of economic recovery will not be sustainable and that the country’s banks may face a fresh crisis over the next year as bad debts begin to surface. Yesterday, there was further proof that the US economy was starting to recover from the recession as data showed that US consumer prices rose modestly in September. The US Labour Department reported the Consumer Price Index (CPI) rose 0.2 per cent in September on the previous month. Eurozone deflation widened to 0.3 per cent in September, inflation is expected to remain below the ECB’s target of just below two per cent for some time. According to a new survey by Alix Partners, two thirds of US and European business recovery professionals expect the number of restructurings to double next year as the downturn continues to bite. Yesterday the ECB slammed the car scrappage scheme that allows drivers to trade in bangers in exchange for a discount on a newer model. Europe’s central bank claimed that the benefits from the scheme had been limited and that its withdrawal could hurt the economy next year.

Due for release today there is CHF Retail Sales, EUR Euro-Zone Trade Balance, EUR Eurozone Trade Balance, CAD Consumer Price Index, CAD Consumer Price Index, CAD Bank Canada Consumer Price Index, USD Net Long-Term TIC Flows, USD Industrial Production.

By Greg Secker